By Frans Cronje
Your report (Reserve Bank indicator shows rosier outlook than economists, April 25) refers. That a 1% GDP growth outlook can trigger the word "rosy" shows just how much trouble SA is in. Short of sustaining an economic growth rate of about 5% for the next two decades, SA cannot resolve its unemployment problem and the populist tension that flows from it.
There are times when some analysts and politicians behave as if avoiding recession is an achievement to be celebrated.
Long after the noise has died down over ANC succession battles and radical economic transformation, SA will still need structural policy reforms that deregulate the labour market, secure property rights, rework empowerment policies and place the private sector and market forces at the centre of the economy. Short of these, the future will at best be a variation on the theme of weak economic performance and rising levels of populism.
On the upside, we know the reforms will work as they contain the principles that underpin every prosperous society. It is just a question of convincing a future government to adopt them — sooner rather than later.
*Frans CronjeCEO, Institute of Race Relations, a think-tank that promotes political and economic freedom.
Read letter on Business Day here
